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05 June 2018

Mastercard unveils solutions to underpin open banking transformation

Ellie Fixter,
Senior PR & Content Manager,

New services will enhance trust and facilitate interactions between banks and third parties to enable both to better serve consumers and businesses

Mastercard announced today that it is developing a new suite of services to underpin the transformation taking place in the industry as partners ready themselves to take advantage of Europe’s PSD2 legislation. With trust and security major pillars of the open banking ecosystem, Mastercard’s new services will make it easier for banks and third party providers to work together, enabling open banking to excel.

With the opening up of financial data, trusted third parties will be given access to the information held by banks. This will not only empower third parties and banking incumbents to offer enhanced and individualised products and services, but it will also allow them to initiate payments on behalf of the business or consumer in some cases.

While the industry transformation has the potential to completely alter how consumers and businesses interact with financial services, Mastercard’s new suite of services will deliver practical answers to the real challenges that risk inhibiting open banking from realising its full potential.

  • They will incorporate a pan-European directory of third party providers to help banks to ensure that parties seeking access to a customer’s account are legitimate.

  • The new services will also include a sophisticated fraud monitoring service (based on Mastercard’s extensive safety and security solutions), which will enable banks to better assess the risk associated with a given third party.
  • They will also provide a dedicated dispute resolution mechanism, spanning both a clear set of rules and a communications platform and leveraging our extensive expertise of handling disputes in today’s payment card industry.

  • Finally, they will also feature a connectivity hub that will help third parties establish and maintain communication with banks.

These services will together contribute to building trust in the new open banking ecosystem amongst consumers, banks, retailers and third parties, as well as simplifying and streamlining their interactions with each other.

“We believe that these services address significant obstacles to the creation of a vibrant and successful open banking ecosystem” says Jason Lane, Executive Vice President, Market Development Europe. “We recognize that trust challenges exist on both sides - third parties need to be able to access the data and infrastructure controlled by banks, and at the same time banks need confidence that the third parties requesting account access are legitimate.

“We want our solutions to give banks and third parties peace of mind, so that they can focus their time and efforts on where they add most value – creating innovative user experiences. The challenge to create trust is not the only one - we are already working on improving end user experiences in the open banking environment, relating to both payments and information access and look forward to rolling those out as the services and ecosystem, evolves,” he added

Mastercard’s new services will be launched first during a pilot phase in early 2019, with the UK and Poland being a particular priority, before being rolled out across Europe later that year.

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